Food Empire’s H2 FY2025 earnings up 29.6% at US$37.1 million; special dividend proposed

[SINGAPORE] Food Empire’s earnings rose 29.6 per cent to US$37.4 million for the second half ended Dec 31, 2025, from US$28.9 million in the same period the year before.

Its H2 FY2025 revenue rose 20.6 per cent to US$302.9 million from US$251.1 million in H2 2024, the food and beverage company said on Wednesday (Feb 25).

The board proposed a final dividend of S$0.05 a share and a special dividend of S$0.04 a share. Together with an interim dividend of S$0.03 already paid, this brings the total dividend for FY2025 to S$0.12 a share, the highest payout in Food Empire’s history.

Earnings per share for H2 FY2025 stood at US$0.0685, up from US$0.0549 in H2 FY2024.

For the full year 2025, the company reported earnings of US$36 million, down nearly a third from US$52.5 million. This was due to a one-off, non-cash, fair-value accounting loss of US$32.6 million related to redeemable exchangeable notes.

The accounting loss was due to a significant increase in Food Empire’s share price above the exchange price, which affected the company’s reported net profit.

Sudeep Nair, the company’s CEO, said: “In FY2025, Food Empire delivered its best performance – a clear testament to the strength of our strategy and execution by our time-tested management team.”

FY2025 revenue was US$576.9 million, up 21.1 per cent from US$476.3 million. This was driven mainly by the Russia and Central Asia segments.

Russia’s revenue contributions grew 34.8 per cent to US$191 million in FY2025, from S$141.7 million in FY2024. This was supported by a 10 per cent appreciation of the Russian rouble against the US dollar, alongside higher sales volumes and price gains.

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Central Asia’s revenue grew 25.6 per cent to US$102 million from US$81.2 million. This was driven mainly by higher sales volume and price gains.

Kazakhstan delivered the strongest results in the segment; the year was also the first full year of consolidation for Tea House, a leading tea producer in Kazakhstan, as a subsidiary in May 2024.

Under its regional expansion strategy, the company completed the construction of its coffee-mix manufacturing facility in Kazakhstan and expanded its snack factory in Malaysia.

Both facilities are expected to start production in the first half of 2026, which the group said will enable it to serve those markets more efficiently and contribute positively to operational performance.

Food Empire has two other projects in the pipeline. The first is the expansion of its spray-dried soluble-coffee manufacturing plant in South India, which is expected to be completed by 2027.

The second is a freeze-dried soluble-coffee manufacturing facility in Vietnam, which is expected to be completed by 2028.

Food Empire said it is mindful of macroeconomic factors such as geopolitical tensions that may cause currency volatility. It also noted that climate change continues to affect coffee bean crops, driving up the cost of its main raw material.

Shares of Food Empire closed down 1.8 per cent or S$0.06 to S$3.27 on Wednesday.